About these figures: Costs and timelines on this page are indicative planning figures compiled from public free zone fee information. They have not been individually verified for this page, may be out of date, and must be confirmed with the free zone before you pay. How we source prices · How we compile data.
German entrepreneurs frequently compare UAE free zone companies with GmbH structures. Here is the 2026 comparison guide.
In this guide:
Corporate Tax Comparison
| Factor | UAE Free Zone | German GmbH |
|---|---|---|
| Corporate tax | 0-9% | 15% Körperschaftsteuer + 5.5% solidarity surcharge = 15.8% + 14-17% Gewerbesteuer (trade tax) |
| Effective corporate tax (Germany) | 0-9% | 29-33% combined |
| Dividend withholding | 0% | 25% Kapitalertragsteuer (WHT) |
| Minimum capital | AED 1,000 (nominal) | EUR 25,000 (required paid-up) |
German Tax Residency Complexity
- German unlimited tax liability: If you have your primary place of abode (gewöhnlicher Aufenthalt) in Germany, you are taxable on worldwide income
- Controlled Foreign Company (CFC) rules: German CFC rules (Hinzurechnungsbesteuerung) can attribute UAE company profits to German shareholders if substance conditions not met
- UAE substance required: UAE company must have real employees and activities in UAE to avoid German CFC attribution
UAE + Germany — When It Works
- Physical relocation: German entrepreneurs who genuinely move to UAE; formally deregister in Germany
- Real UAE business: UAE company with actual UAE team, office, and operations
- Consult: German Steuerberater and international tax lawyer before structuring
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